Nexo Bitcoin Withdrawals Surge Following Raid of Bulgarian Offices – Bitcoin News
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After crypto lender Nexo’s offices were raided in Bulgaria, the digital currency lending platform experienced a significant number of withdrawals starting on January 12, 2023. An archived snapshot of Nexo’s live certificate shows that the company held 133,263 bitcoins on that date. As of January 13, 2023, Nexo’s certificate shows that the company now holds 124,939 bitcoins, with $157.21 million worth of bitcoins withdrawn in the last 24 hours.
Customers withdraw $157 million worth of Bitcoin from Nexo’s platform in 24 hours
Last year, several exchanges experienced pull tests, and after Thursday’s raid on Nexo’s offices, the crypto lender is dealing with similar issues. On January 12, 2023, reports revealed that Nexo was being investigated by the Bulgarian Attorney General and about 300 investigators from various agencies. The company is accused of violating tax requirements, participating in money laundering and circumventing economic sanctions related to the Russian Federation.
Nexo has denied any wrongdoing and immediately released a statement to the community on Twitter saying that the company follows “very strict anti-money laundering and ‘know your customer’” policies. Since the incident, the company has seen withdrawals according to its real-time evidence networks. For example, on January 3, 2023, Nexo had approximately 134 203 bitcoins worth $2.5 billion at current BTC exchange rates As of January 12, 2023, the crypto lender’s BTC deposit had dropped to 133,263 bitcoins.
Twenty-four hours later, on Friday, January 13, 2023, Nexon’s BTC inventory had dropped by 8,324 BTC to its current level of 124,939 BTC. This means that at current BTC exchange rates, $157.21 million was removed from Nexo’s bitcoin cache. Nexo’s withdrawals follow several other exchanges that have experienced large withdrawals in a short period of time. After the collapse of FTX, users withdrew a significant amount of digital assets from exchanges such as Binance, Kucoin and Crypto.com.
It’s unclear what’s going on with the Nexo case in Bulgaria, but based on withdrawals over the past day, it seems customers are worried. When you talk to the editor of The Block Yogita KhatriFounder of Nexo Antony Trenchev said the withdrawals represented just two percent of the company’s assets under management (AUM). “Nexo can confirm that all systems are operational and everything is processed in real time as always,” Trenchev told Khatri on Friday. “Activity is orders of magnitude lower than after Celsius and FTX,” the Nexo executive added.
What do you think about the recent Nexo withdrawal and the ongoing investigation in Bulgaria? Share your thoughts in the comments below.
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